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IN THE HIGH COURT OF DELHI
Chandra Dhari Singh, J.
Mahesh Kapoor - Appellant
Versus
Lt. Governor of Delhi - Respondent
W.P.(C) 4250 of 2007 & CM Appl. 13778 of 2009
Decided On : 23-09-2022




Under the Scheme for conversion from leasehold to freehold, applications cannot be processed if the lease is cancelled and litigation regarding the property title is pending.

Headnote:(A) Constitution of India - Articles 226 and 227 - Writ jurisdiction - Rejection of petition for conversion of leasehold to freehold - The authority rejected the application on grounds of cancellation of lease deed and pendency of litigation - No error apparent pervaded the order as the authority acted in accordance with the prescribed Scheme and rules (Paras 44-46).

(B) Jurisprudential implications of the scheme - The scheme requires restoration of lease before conversion; mere application does not confer entitlement (Paras 29-30).

(C) Nature of property rights and misuse - Lease was originally provided for specific industrial use; violation warranted cancellation and impeded conversion (Paras 41-42).

Facts of the case:
The petitioner sought to convert his industrial lease into freehold after the lease was cancelled due to alleged misuse and the absence of the required approvals for property transfer. The application was submitted during ongoing eviction proceedings initiated under the Public Premises Act, which were dismissed.

Findings of Court:
The rejection of the conversion application was justified as the lease had been cancelled, and the matter was sub judice.

Issues: The main issue addressed was whether the authority erred in rejecting the conversion application while the lease was cancelled and a legal dispute existed.

Ratio Decidendi: The court held that the conversion process cannot proceed where the lease deed is not in existence; the application for conversion must meet all eligibility criteria specified in the scheme, including addressing re-entry situations.

Result: Petition dismissed.

JUDGMENT

Chandra Dhari Singh, J. The instant petition under Article 226 and 227 of the Constitution of India has been filed on behalf of the petitioner seeking a writ, order or direction in the nature of certiorari for quashing and setting aside letter No. 396 issued by the respondent dated on 20th March 2007 rejecting the representation of the petitioner for conversion of his premises from leasehold to freehold.

FACTUAL MATRIX

2. A brief background of the case which has led to the filing of the instant petition is delineated hereafter:

I. The petitioner is the owner of premises bearing Plot No. 133, Functional Industrial Estate, Patparganj, Delhi which was allotted/leased out to M/s Jeps Pharma (P) Ltd. (hereinafter "the lessee") vide Perpetual Lease Deed dated 28th January 1993 through its Director, Jatinder Singh Kohli and Rakesh Bajaj. The petitioner is also the General Power of Attorney holder (hereinafter "GPA") for the lessee. The lease for the premises in question was cancelled by the order of the respondent no. 1/Lt. Governor of Delhi, under which the respondent no. 2 functions.

II. By an ex-parte order dated 27th May 1998, with corrigendum dated 30th June 1998, of the respondent no. 2, the aforesaid Lease Deed was cancelled on the ground that then lessee had sold the premises in question without the prior permission of the respondent and that the premises was being used for purposes other than stipulated under the Lease Deed. It is the case of the petitioner that he came to know about the passing of the ex-parte order against him and the lessee only when he received a notice under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 (hereinafter "PP Act"). Proceedings were, accordingly initiated under the PP Act before the Estate Officer.

III. The petitioner, thereafter, made a representation to the respondent no. 1 on 28th January 1999, requesting for revocation of the ex-parte cancellation order and restoration of the Lease Deed so cancelled. Subsequent representations were made by the petitioner to the Lt. Governor vide representation dated 9th August 1999 and before the respondent on 11th September 2001 was made for restoration of lease deed.

IV. The matter before the Estate Officer came to a conclusion by passing of the impugned order dated 6th June 2003, whereby, proceedings for eviction of the petitioner were ordered to be initiated after observing on essentially the grounds, first, that reasonable opportunities were given to the petitioner to present their case before cancellation of the lease and completion of these proceedings, however, no response was submitted by them, secondly, that the petitioner was not running the industry for the purposes for which the lease was granted and plot was allotted to it and hence, it violated the terms of the lease, and thirdly, that none of the directors of the petitioner replied to the Notice served under the PP Act.

V. Aggrieved by the said order of the Estate Officer, an Appeal was preferred before the Appellate Court, which also came to be decided against the petitioner by the passing of the impugned order dated 30th October 2009, wherein it was observed that adequate notice was served to the petitioners herein and they were given a fair, just and reasonable opportunity to present their case. It was further observed that the premises in question were in fact a public premise and thus, no grounds were found to interfere with the impugned order of 6th June 2003.

VI. During the pendency of the Appeal, a Scheme of Conversion from Lease-hold System into Free-hold for Industrial Plots and Built-Up Sheds was introduced by the respondent (hereinafter "the Scheme"). The petitioner, seeking benefits under the Scheme, approached the Office of Commissioner of Industries where he was told that since the lease deed in question had been cancelled, he could not apply for conversion.

VII. Thereafter, the petitioner made a detailed representation dated 14th December 200

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